ThaiBev-run Sabeco becomes parent firm of Vietnamese brewer Sabibeco

Ho Chi Minh City-based Sabeco, controlled by Thai Beverage, has completed the acquisition of 37.8 million shares, or a 43.2% stake, in local brewer Sabibeco Group (SBB), officially making it a subsidiary.

At the price of VND22,000 ($0.86) a share, Sabeco spent nearly VND832 billion ($32.7 million) on the acquision.

Following the move, Sabeco now owns nearly 52.2 million, or 59.6%, becoming the parent firm of Sabibeco.

The acquisition of SBB, known for its Sagota brand products, will not only help Sabeco expand its production capacity but also solidify its position as the largest brewer in Vietnam by output.

Founded in 2005, Sabibeco posted VND484.2 billion ($19.03 million) in net revenue in the third quarter of this year, up 2.62% year-on-year. It incurred a net loss of VND10 billion ($392,950) in the period, narrowing its loss by 49.9% from the same period last year.

According to a report by FPT Securities, as of end-2023, Sabeco operated 26 plants in Vietnam with a total designed capacity of 2.4 billion liters per year. With the addition of six Sabibeco factories that produce a combined total of 610 million liters annually, Sabeco’s total annual capacity will rise to 3.01 billion liters.

Currently, Sabeco’s main competitors in the Vietnam market, Heineken Vietnam, Habeco, Carlsberg and Sapporo, have respective annual capacities of 2.78 billion liters, 800 million liters, 360 million liters, and 150 million liters, according to the broker.